Property Disclosure Statement: Seller’s Guide to the PDS

Selling your home in the lower mainland or other places in BC means dealing with a series of important legal documents.

An important document you’ll come across is the Property Disclosure Statement (PDS). For many sellers, this form can seem intimidating. What information do you need to provide? What are the risks of getting it wrong? These are important questions to answer.

We’ll explain what it is, why it’s so important for sellers to complete it accurately, and what key areas it covers. By the end, you’ll feel confident in how to fill out this form or inform your realtor for an accurate disclosure of any necessary details.

What is the Property Condition Disclosure Statement (PCDS) in BC?

The Property Condition Disclosure Statement is often referred to as the PCDS or simply PDS.

In short, it’s a multi-page document that the seller of a property provides to potential buyers. It will contain a detailed summary of the property’s condition based on the seller’s knowledge.

It’s basically a formal declaration from you as a seller, stating that the information provided is true and accurate, to the best of your knowledge.

The form has a series of specific questions about different aspects of the property. From the plumbing and electrical systems to the roof and foundation. The important part is that your answers should be fully honest and reflect your direct awareness of the home’s history.

You may be surprised to learn that the PDS is not required by law, but it’s become standard practice for most MLS listings.

How it Helps Buyers

The purpose of the PDS is to give buyers a transparent overview of the home they are considering, highlighting any known issues or past problems.

Example

Let’s say for example, if you know that the basement in your Vancouver home has had a water leak in the past, even if you’ve since repaired it, this is something you would disclose on the PDS.

The form is designed to reveal “latent defects”—significant hidden problems that a buyer would not discover through a standard visual inspection. Completing this document honestly is a cornerstone of a good-faith real estate transaction in British Columbia.

With the PDS completed, buyers can make a more informed decision, which fosters a sense of trust and can streamline the negotiation process.

The last thing you want is legal trouble because of disclosure issues.

The Importance of the Seller Filling out This Form

The PDS has become a standard and expected part of almost every residential real estate transaction in BC. So, refusing to provide one can be a major red flag for buyers as they may think you have something to hide.

That’s why completing the PDS is an important responsibility as a seller. A buyer who feels confident that you’ve been upfront about the property’s condition is more likely to proceed with an strong offer if that’s their future dream home.

No one wants to buy a headache, which is why in competitive markets, like Richmond or Burnaby, the PDS sets up the sale for a quick and smooth closing.

Recommended Resource: Costs of Selling Your Home in BC

Example PDS Form

See the full example of a PDS for #3 – 995 Lynn Valley Road, North Vancouver

The Risks of Non-Disclosure for Sellers

If you deliberately conceal a significant issue, provide false information on purpose or by negligence (without the intent to deceive) on the PDS, you could be held liable for misrepresentation. Failing to disclose a known material latent defect can have serious legal and financial consequences.

A material latent defect is a hidden flaw that is not easily discoverable through a reasonable inspection. But renders the property dangerous, unfit for habitation, or unsuitable for its purpose.

That’s the key here. If the defect is visible, it doesn’t necessarily mean it needs to be disclosed on the PDS. We highly recommend that you review this with your Realtor though.

Hypothetical Example

Let’s consider a hypothetical scenario. Imagine you are selling your older character home in Vancouver. You know that the foundation has a significant crack that was patched over cosmetically but never structurally repaired. You decide not to mention it on the PDS, hoping no one will notice. As a further benefit to you, as the seller, the buyer proceeds with the purchase and waives a home inspection for a more competitive offer. Then a year later, the foundation shifts, causing extensive long-term damage.

In this situation, the buyer may have a case to sue you for the cost of repairs. They would argue that, had you disclosed the issue, they wouldn’t have purchased the property or would have offered significantly less.

It’s always better to be transparent about a problem than to risk a lawsuit. Closing costs can add up, you don’t want to make this worse down the road.

Another complicated situation could be selling an inherited property, where you have no clue of any deficiencies. Its times like these where it’s important to work with a Realtor that can guide you through these situations.

What Happens if There are Issues After the Sale?

Even with honest disclosure, issues can sometimes arise after the sale is complete. If a problem emerges, the buyer’s first step is to determine whether it constitutes a material latent defect that you knew about and failed to disclose.

If the buyer believes you misrepresented the property’s condition, they may seek legal action. To succeed, they must prove three things:

The defect existed before the completion of the sale.
The defect is “latent” (hidden and not discoverable upon a reasonable inspection).
You, the seller, were aware of the defect and did not disclose it.

Proving what a seller knew can be challenging. However, if evidence emerges—such as a neighbour’s testimony or a contractor’s old invoice for an undisclosed repair—the buyer’s case becomes much stronger.

If a court finds you liable for misrepresentation, you could be ordered to pay damages to the buyer. These damages typically cover the cost of repairing the defect or the difference in the property’s value had the defect been disclosed. This legal process can be stressful, time-consuming, and expensive, underscoring the importance of honest and thorough disclosure from the outset.

Now that we understand the gravity of the PDS, let’s explore what information the document actually requires.

Core Areas of a PCDS

The PDS is organized into several sections, each asking specific “yes,” “no,” or “do not know” questions about different parts of the property. For any “yes” answer, you must provide a written explanation in the space provided.

Here are the core areas typically covered:

Property & Land

This section deals with zoning, heritage status, easements, and any known encroachments or unregistered leases. It might ask if you are aware of any landfill, soil contamination, or issues with flooding on the property.

Structural

Here, you’ll be asked about the building’s structure. Questions include whether you are aware of any damage due to wind, fire, or insects (like termites or carpenter ants), any water leakage in the basement or crawlspace, or any problems with the foundation.

Systems

This part covers the home’s essential systems. You’ll need to answer questions about the electrical system, plumbing, and heating. For example: Are you aware of any problems with the hot water tank? Does the property have a septic system, and has it been maintained?

Fixtures & Equipment

This section addresses included appliances and fixtures, such as the dishwasher, oven, and any security systems. You will be asked if these items are in proper working order.

Strata (If Applicable)

For condos, townhouses, and other strata properties, there is a specific set of questions. These relate to special levies, pending lawsuits against the strata corporation, building envelope issues, and any restrictions on pets, rentals, or age.

General

This catch-all section asks about other important details, such as whether you have made any additions or alterations to the property with the required permits. It also asks if you are aware of the property having been used as a grow-op or for the production of illegal substances.

If you’re unsure on any questions listed in the PDS, chat with your Realtor, a great Realtor will be able to walk you through this easily.

Recommended Reading: Subject Removals Guide for Home Buyers & Sellers in BC

Understanding This Form as a Buyer

As we’ve covered, the PDS is an important source of truth for disclosures about a property, that can make or break an offer.

When reviewing a PDS, a buyer and their realtor should look for red flags. Vague answers, a high number of “do not know” responses, or explanations that seem incomplete can all signal that further investigation is needed.

Can you Fully Rely on the PDS as a Buyer?

In short, the PDS is a document to rely on but not for the entire picture when purchasing. While the PDS is an important document, buyers must remember that it is not a substitute for other due diligence.

There are even cases where a previous owner might have hid an issue from the current seller, so nothing appears on the PDS. Which is exactly why a buyer should treat the PDS as one piece, not the complete picture.

The Importance of a Home Inspection

With the above in mind, it’s important to have a professional home inspection done. They conduct a non-invasive visual examination of the property, from the roof to the foundation, and provide a detailed report on its condition.

How a Real Estate Agent Can Help You Navigate This

Navigating the Property Disclosure Statement can be complex, but you don’t have to do it alone.

An experienced real estate agent will be invaluable for you, whether you’re a seller or buyer.

For sellers, a realtor can:

Explain each question on the PDS and help you understand your disclosure obligations.
Advise you on how to answer questions accurately and clearly.
Help you gather the necessary documentation to support your disclosures.
Review the completed form to ensure it is thorough and minimizes your risk.

For buyers, a realtor will:

Thoroughly review the seller’s PDS and point out any areas of concern.
Help you formulate questions for the seller based on the disclosures.
Recommend that you obtain a professional home inspection and help you find a qualified inspector.
Advise you on how to address any issues discovered in the PDS or home inspection during negotiations.

Your realtor should act as your strategic advisor and help you use the PDS to your advantage while protecting your interests.

Full PDS in Text Form – Example

1. LAND

Are you aware of any past or present underground oil storage tank(s) in or on the Development?
Are you aware of any existing tenancies, written or oral?
Are you aware of any current or pending local improvement levies/charges?
Are you aware of any pending litigation or claim affecting the Development or the Unit from any person or public body?

2. SERVICES

Please indicate the water system(s) the Development uses:
- A water provider supplies my water (e.g., local government, private utility)
- I have a private groundwater system (e.g., well)
- Water is diverted from a surface water source (e.g., creek or lake)
- Not connected
- Other

If you indicated in 2.A. that the Development has a private groundwater or private surface water system, you may require a water licence issued by the provincial government.
- Do you have a water licence for the Development already?
- Have you applied for a water licence and are awaiting response?
Are you aware of any problems with the water system?
Are you aware of any problems with the sanitary sewer system?

3. BUILDING Respecting the Unit and Common Property

Has a final building inspection been approved or a final occupancy permit been obtained?
Has the fireplace, fireplace insert, or wood stove installation been approved:

by local authorities?
by a WETT certified inspector?

Is this Unit occupied, or has this Unit been previously occupied?
Are you the “owner developer” as defined in the Strata Property Act?
Does the Unit have any equipment leases or service contracts: e.g., security systems, water purification, etc.?
Are you aware of any additions or alterations made without a required permit: e.g., building, electrical, gas, etc.?
Are you aware of any structural problems with any of the buildings in the Development?
Are you aware of any problems with the heating and/or central air conditioning system?
Are you aware of any damage due to wind, fire or water?
Are you aware of any infestation or unrepaired damage by insects, rodents or bats?
Are you aware of any leakage or unrepaired damage?
Are you aware of any problems with the electrical or gas system?
Are you aware of any problems with the plumbing system?
Are you aware of any pet restrictions?
Are you aware of any rental restrictions?
Are you aware of any age restrictions?
Are you aware of any other restrictions? If so, provide details on page 6, Section 5. ADDITIONAL COMMENTS AND/OR EXPLANATIONS
Are you aware of any special assessment(s) voted on or proposed?
Have you paid any special assessment(s) in the past 5 years?
Are you aware of any agreements that provide for future payment or possible payment of monies to you in your capacity as the current owner of the Unit?
Are you aware of any pending strata corporation policy or bylaw amendment(s) which may alter or restrict the uses of the Unit?
Are you aware of any problems with the swimming pool and/or hot tub?
Are you aware of any additions, alterations or upgrades made to the Unit that were not installed by the original developer?
Are there any agreements under which the owner of the Unit assumes responsibility for the installation and/or maintenance of alterations to the Unit or Common Property?
Was this Unit constructed by an “owner builder,” as defined in the Homeowner Protection Act, within the last 10 years? If yes, attach required Owner Builder Disclosure Notice.
Is this Unit or related Common Property covered by home warranty insurance under the Homeowner Protection Act?
Is there a current “EnerGuide for Houses” rating number available for this unit? If so, what is the rating number? When was the energy assessment report prepared?
Nature of Interest/Ownership: Freehold / Time Share / Leasehold / Undivided / Cooperative
Management Company
Name of Manager
Telephone
Address
If self managed:
- Strata Council President’s Name / Telephone
- Strata Council Secretary Treasurer’s Name / Telephone
Are the following documents available?
- Bylaws
- Rules/Regulations
- Year-to-date Financial Statements
- Current Year’s Operating Budget
- All Minutes of Last 24 Months Including Council, Special and AGM Minutes
- Engineer’s Report and/or Building Envelope Assessment
- Strata Plan
- Depreciation Report
- Reserve Fund Study
- Summary of Insurance Coverages (including premium)
What is the monthly strata fee? $
Does this monthly fee include:
- Management? / Heat? / Hot Water? / Gas Fireplace? / Garbage? / Sewer?
- Recreation? / Cable? / Gardening? / Caretaker? / Water? / Other?
Number of Unit parking stalls included and specific numbers
- Are these: Limited Common Property? / Common Property? / Rented? / Long Term Lease? / Other?
Storage Locker? Yes / No – Number(s)
- Are these: Limited Common Property? / Common Property? / Rented? / Long Term Lease? / Other?
To the best of your knowledge, has the Unit been tested for radon?
- If yes, was the most recent test: short term or long term (more than 90 days)
- Level: bq/m3 / pCi/L / date of test (DD/MM/YYY)
Is there a radon mitigation system in the Unit?
- If yes, are you aware of any problems or deficiencies with the radon mitigation system in the Unit?
To the best of your knowledge, has the Common Property been tested for radon?
- If yes, was the most recent test: short term or long term (more than 90 days)
- Level: bq/m3 / pCi/L / date of test (DD/MM/YYY)
Is there a radon mitigation system for the Common Property?
- If yes, are you aware of any problems or deficiencies with the radon mitigation system for the Common Property?

4. GENERAL

Are you aware if the Unit, or any other unit, or the Development has been used to grow cannabis (other than as permitted by law) or to manufacture illegal substances?
Are you aware of any latent defect in respect of the Development? (For the purposes of this question, “latent defect” means a defect that cannot be discerned through a reasonable inspection of the Development that renders the Development: (a) dangerous or potentially dangerous to occupants; or (b) unfit for habitation.)
Are you aware of any existing or proposed heritage restrictions affecting the Development (including the Development being designated as a “heritage site” or as having “heritage value” under the Heritage Conservation Act or municipal legislation)?
Are you aware of any existing or proposed archaeological restrictions affecting the Development (including the Development being designated as an archaeological site or as having archaeological value under applicable law)?

Final Thoughts

By approaching the PDS with integrity and honesty, along with the professional guidance of your realtor, you can protect yourself from future liability and get your home sold for top dollar.

If you are thinking of selling your home in the Metro Vancouver area and have questions about the PDS or any other part of the selling process, feel free to contact us here. We’re happy to help.